A house in Cambridge will cost you more than 14 times the average salary, new data reveals.

The latest Hometrack UK Cities House Price Index shows the huge gap between average earnings and house prices, with a home in Cambridge coming in at 14.3 times average pay.

Cambridge follows close behind London where house prices are now 14.5 times average earnings, which is 42 per cent higher than the average of 10.2 for the last 15 years.

Other cities where house prices are far outstripping earnings include Oxford (at 12.6 times average earnings), Bournemouth (10.1) and Bristol (9.7).

Richard Donnell, research and insight director at Hometrack, said: “Unaffordability in London has reached a record high despite a material slowdown in the rate of house price growth over the last year.

House prices compared to average earnings (Image: Hometrack)

"Lower housing turnover in the capital has led to a tightening of supply in recent months which has stabilised house price growth. Even so, the gap between average earnings and house prices in the capital has never been wider."

He added: “In regional cities outside of the south east house price growth remains robust as affordability is still attractive and unemployment continues to fall.

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"This can be seen in cities such as Manchester and Birmingham where the current house price to earnings ratio is only slightly higher than it has been on average over the last 15 years."

In Manchester the current prices to earnings ratio is 5.9 compared to a 15-year average of 5.2, while a house in Birmingham costs 5.9 times average earnings compared to 5.4 over 15 years.

Mr Donnell said: "As long as mortgage rates remain relatively low and the economy continues to improve, there is a strong feasibility that house prices will rise steadily in regional cities over the next two to three years.”

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Affordable housing?

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